Expect Deep Cuts to Coal-Fired Power Plants Because of Carbon Regulations | U.S. Chamber of Commerce

Expect Deep Cuts to Coal-Fired Power Plants Because of Carbon Regulations 

Expect Deep Cuts to Coal-Fired Power Plants Because of Carbon Regulations

Monday, June 9, 2014 - 4:30pm

Sean Hackbarth

WTHI-IN: In Indiana, Obama Coal Regulations Are Threatening Jobs And Driving Up Energy Costs

Video of WTHI-IN: In Indiana, Obama Coal Regulations Are Threatening Jobs And Driving Up Energy Costs

USA Today found that the planned retirements of coal-fired power plants over the next 10 years “will do almost nothing to reduce” carbon emissions. To meet EPA’s carbon dioxide “target by 2030 will probably require many more coal retirements and lock in the nation's energy shift toward natural gas and renewable power.” 
Federal regulations are already pushing coal-fired power plants out of the energy mix. According to Energy Information Administration estimates, one rule, the Mercury and Air Toxics Standards (MATS) will force almost one-fifth of them to shut down by 2020. The proposed carbon regulations will make things worse.
Despite the talk from EPA that states will have “enormous flexibility to choose the fuel sources,” these regulations essentially pick energy winners and losers.

This will mean lost jobs—at least 75,000, according to the United Mine Workers of America and would be felt in states like Indiana, local television station WTHI reports [see the video above]. 
“This is essentially an attempt to eliminate one of our two most-abundant resources for producing electricity,” said Suzanne Jaworowski, spokewoman for Indiana’s Sunrise Coal. Tim Rushenberg of the Indiana Manufacturers Association estimates that the rules could add $600 million annually to the electric bills of the state’s factories.
Along with the fear of lost jobs and higher electricity costs, we should worry about the reliability of the electrical grid. Sen. Lisa Murkowski (R-AK) addressed this in a Senate floor speech, last week:

“It is uncertain if there will be enough time – to say nothing of sufficient capital available for investment – to build new facilities or other forms of generation needed to ensure the continued reliability of the grid,” Murkowski said.
“The Polar Vortex caused 50,000 megawatts of power plant outages,” Murkowski added. “For one key system, 89 percent of the coal capacity that is slated for retirement next year because of an EPA rule was called upon to meet rising demand. Think about that. We had a tough winter and coal facilities were able to step up.”
“The question we should be asking is, what happens when that capacity is gone? Hoping for a mild winter isn’t a viable strategy. We can’t have a-hope-and-a-prayer policy,” she said.

However you cut it, EPA’s proposed carbon regulations will be all pain with little gain.